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Keystone enhances BTL lending criteria

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  • 01/11/2012
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Keystone enhances BTL lending criteria
Keystone has made further enhancements to its lending criteria, after increasing its maximum loan threshold from £350,000 to £500,000.

Lender arrangement fees will now be added to loans on all products in the Keystone range, including multi-units and HMOs, allowing borrowers to reach a genuine 75% LTV for all property types.

The rental calculation is now based from 130% of the pay rate across the full product range, based on the loan value net of added fees.

Now, on a monthly rental income of £1,000 it will be possible to borrow up to £185,000 against a maximum of £145,000 based on the previous rental income requirement.

David Whittaker, managing director of Keystone Buy to Let Mortgages and Mortgages for Business, said: “These changes highlight Keystone’s commitment to professional landlords with more complex needs, now offering a market leading rental income stress test on the five year fixed rates which can only be good news in the current economic climate.”

Keystone will also accept applications relating to property with corporate leases to PLCs, local authorities and some housing associations as long as the leases are on a full repairing and insuring (FRI) contract up to a maximum of five years.

The contracts provide investors with the certainty of rental income over a longer time period without the risk of voids. Many borrowers also take a five-year fixed rate in these cases to add an extra level of security.

Rob Lankey, managing director of commercial mortgages, at Aldermore, said:
“We’ve listened carefully to landlords and believe that the recent reduction of more than 0.5% on our five year fixed rates will work particularly well for borrowers who like the security of longer term fixes coupled with the stability provided by corporate leases.”

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